Records to be kept – Audit of Records
Records to be Kept
Employers must retain, in respect of each employee -
- a record of all benefits provided, and
- the computation of the amount of each taxable benefit.
When this entails recording business kilometres, logbooks should be used.
A record of amounts of tax due on benefits recouped from employees other than by way of normal deduction from money wages or salary must be retained by employers.
All records, calculations, and documentation relating to the valuation of benefits provided to employees must be retained by the employer for examination in the event of an audit. The records must be kept for 6 years unless Revenue advises otherwise.
If an employer has doubts about the adequacy of the tax records for employees the local Revenue Office can be consulted.
Completion of forms P35, P45 and P60
For the year 2004 and subsequent years, the gross pay on the form P35 (end of year return) for each employee should include any taxable benefit received by that employee during the year. In addition, the total amount of taxable benefits in the year for all employees should be included in the appropriate section of the summary page of the P35.
The employee forms P45 and P60 should reflect the total of the ordinary money wages or salary plus the amount of any taxable benefit paid during the year and the PAYE and PRSI paid in respect of the aggregate sum.
Where emoluments or taxable benefits have been regrossed for tax and PRSI purposes, the amounts included in respect of pay, tax and PRSI on forms P35, P45 and P60 should be shown at their regrossed values (see final paragraph of: Employer arrangements to discharge employees’ liabilities to tax and PRSI).
The preceding paragraphs do not apply to employer arrangements referred to at (see paragraphs 1-6 of: Employer arrangements to discharge employees’ liabilities to tax and PRSI.) However, a supplementary form P35 showing the regrossed taxable benefits must be supplied.
Form P11D
It will not be necessary to return on Forms P11D benefits that have been taxed under the PAYE arrangements explained in this Guide.